Ringgit ends lower versus greenback on oil price decline, expectation of US rate hike

  • Forex
  • Monday, 29 May 2023

KUALA LUMPUR: The ringgit retreated from last week’s gains to close lower against the greenback on Monday as declining crude oil prices and expectations of a US interest rate hike in June weighed on the local currency despite a tentative agreement on the US debt ceiling.

At 6 pm, the local note eased to 4.6030/6060 against the US dollar from Friday’s close of 4.5970/6035.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the ringgit hovered at around RM4.60 to the greenback today.

The US dollar is still holding steady on expectations of another interest rate hike in the United States next month.

On the US debt ceiling, which has adversely impacted currencies around the world, he said the next event is the voting on it among US congressmen on Wednesday. US President Joe Biden has urged Congress to pass the tentative debt limit deal he reached with House Speaker Kevin McCarthy over the weekend.

If approved, it would allow the US government to borrow money until well after the next presidential election due in November 2024, according to a BBC report.

"At the moment, the resistance and support levels for the ringgit stand at RM4.6257 and RM4.5491 against the US dollar, respectively.

"We expect the narrow range for the US dollar/ringgit pair to persist until the debt ceiling stalemate is resolved,” Mohd Afzanizam told Bernama.

At today’s close, the ringgit was mostly higher against a basket of major currencies.

It was almost flat vis-a-vis the British pound at 5.6829/6866 from 5.6819/6899 at the close on Friday, slightly better against the euro at 4.9330/9363 from 4.9340/9409 and rose against the Japanese yen to 3.2820/2844 from 3.2918/2967 last week.

The local note was traded mixed against other Asean currencies.

It was flat versus the Indonesian rupiah to 307.3/307.7 from last week's close of 307.3/307.9, slightly lower at 3.4016/4043 against the Singapore dollar from 3.4012/4062 and increased vis-a-vis the Thai baht to 13.2316/2463 from 13.2539/2784.

However, the ringgit rose against the Philippine peso at 8.20/8.21 from 8.24/8.25 previously. - Bernama

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